6. Concluding discussion
6.3 Reflections on future research
106
107
same nation state and is not intended to explore the linkages between these two locations and the broader global economy. In contrast, as my thesis shows, competing locations in distant countries can also cooperate and exchange knowledge, especially if they share key actors. More research is needed on the relationships between clusters producing the same product: how do they interact? What are the potential effects in terms of institutional structure and competitiveness? My third paper suggests that the African cluster converged towards the Southeast Asian model; future studies should investigate the potential for institutional isomorphism across clusters and mechanisms of mutual influence between clusters in different locations, making explicit use of institutional theory.
Second, in the Business History literature, interesting research might emerge from a closer analysis of colonial legacies in developing countries and their relationships with existing export clusters. In my second paper, I showed that the Malaysian Government adopted the governance practices in use under colonial rule, but unlike the withdrawing British Government, it was able to intervene directly to foster local growth through cooperation with the cluster players. Thus, future research might concentrate on different configurations of cluster governance and government intervention in clusters, depending on the type of political regime being dealt with.
Third, more studies are needed to understand the conditions leading to the establishment of
“global clusters”, that is to say those peculiar clusters that are major world providers of a specific good. By supplying the majority of global demand, these clusters are particularly insightful cases for designing solutions that overcome the duality between locality and globality. This is especially interesting for, but not limited to, agribusiness clusters. Given that agriculture is more climate – and geography – dependent than other sectors, the number of locations suitable for production might be more limited. My first paper suggests that a mix of factors led to the successful emergence of this export cluster, such as a network of internationally oriented traders and the existence of a service hub; further analysis of these
108
specific elements might provide new insights into the role of globally acting clusters and in the process of globalization.
My study could and should be expanded on in several ways. Although this might be empirically challenging, it would be particularly relevant for future research to focus in more detail on palm oil smallholders under the FELDA schemes and the related outcomes in terms of social upgrading. A focused study on the (primarily) ethnic Chinese entrepreneurs that entered the industry after the decline of agency houses will also provide new insights on shifting representation within clusters and complement the results of my dissertation on this topic. Further, the study of the development of the cluster from the 1970s onward could yield additional findings on the role of clusters as drivers of local development. In the 1980s, Malaysian companies started opening up estates in Indonesia, obtaining land grants in exchange for participating in World Bank-sponsored smallholding programs. Thus, an interesting question would be whether the regional expansion of the palm oil cluster during the 1980s produced institutional convergence from Malaysia towards Indonesia, not just within the cluster but also at the government level, through the creation of liaison institutions between the public and private spheres following the Malay model.
For International Business, a promising line of inquiry emerging from my thesis concerns the role of anchor firms within the cluster. A closer look at the role of Unilever in the emergence, survival, and revival of palm oil as a major vegetable oil and its relationship with other corporate actors within the cluster may lead to new findings on the mechanisms of cluster integration and polarity within broader GVCs.
Finally, a variation on the theme of cluster competition could involve examining the case of clusters specialized in different competing product segments within the same market. A very interesting history paper could emerge from the analysis of archival sources on the
“battle of oils,” which took place in the US when palm oil and soybean oil were vying for
109
primacy in the world market for vegetable oils. During the 1980s, Southeast Asian palm oil became the target of a boycott campaign, supported primarily by the powerful American Soybean Association, according to which the palm oil contained in certain foodstuffs was a major cause of heart disease. Such research may serve as a relevant historical case for evaluating cluster resilience in the face of political smear campaigns, and may also have current policy implications given that palm oil was recently attacked as a threat to biodiversity and sustainability.
In conclusion, clusters are durable institutions that adapt to changing contextual conditions.
This thesis presented them as median spaces between global pressures and local specificity, both of which contribute to their development. Clusters are more complex phenomena than has often been assumed, and if we are to understand them fully we must undoubtedly approach them from a comparative perspective.
110
Tables and Figures Figure 1. Map of Malaysia and Indonesia today
Figure 2. Map of world territory suitable for oil palm cultivation
Source: Fao Statistics. Retrieved From: http://www.fao.org/nr/nr-home/en/
INDONESIA
111 Figure 3. Palm Oil in five steps
Source: PORAM Presentation, (2014)
Figure 4. Palm oil supply chain flowchart
Source: van Gelder, Greasy Palms Report, Friends of Earth, (2004)
112 Figure 5. Map of colonial Southeast Asia during 1910s
Figure 6. Map of colonial West Africa during the 1910s. (British possessions in red)
Source: Image: New World Encyclopedia
113 Figure 7. Timeline of Malaysia’s political history
Source: Uwe Dedering. Retrieved from:
http://commons.wikimedia.org/wiki/File:Malaysia_Tree_Diagram.png and http://commons.wikimedia.org/wiki/File:Malaysia_location_map.svg
Figure 8.Porter Diamond Model
114
Table 1. Main palm oil players in the Southeast Asian cluster in modern times (2013)
115
Table 2. Main cluster players (rubber and palm oil) during the colonial period (1880-1945 ca.)
Source: Compilation of archival material (TNA, LMA, BC, UL) and secondary sources (Tate 1996; Martin 2003; White 2004)
FUNCTION INSTITUTIONS HEADQUARTER RUBBER PALM OIL ACTORS
RGA London x Agency houses and
plantation companies
RTA London x Rubber traders
PAM Kuala Lumpur x
Planters in British Malaya (European
and Chinese)
ISP Kuala Lumpur x x Planters and estate
managers
UPAM Kuala Lumpur x European rubber
planters
MEOA Kuala Lumpur
European and Chinese non-rubber
planters
AVROS Medan x rubber planters in
East Sumatra
Palm Oil Pool London x Palm oil estates in
Malaya
Sumatran Palm Oil Pool N/A x Palm oil estates in
Sumatra
ISP Kuala Lumpur x x
dissemination activities on behalf of planters in Malaya
RRIM Kuala Lumpur x
British colonial government; RGA members and PAM Malaya Agricultural
Department Sedang x British colonial
government
AVROS' station Medan, DEI x x East Sumatran
plantation companies
Bogor Botanic Gardens Bogor, DEI Dutch colonial
government
Kew Botanic Gardens Singapore x British colonial
government
Ceylon Botanic Gardens Ceylon x
British colonial government Gold Coast Agricultural
Department Accra x British colonial
government Nigeria Agricultural
Department Ibadan x British colonial
government
Eala Botanic Gardens Belgian Congo x Belgian colonial
government
INEAC Belgian Congo x Unilever and Belgian
colonial government Socfin research stations Sumatra and Malaya x x Socfin
HAP research stations Sumatra and Malaya x x
Hollandaise&Americ an Plantation
Company
Dusun Durian Estates Malaya x H&C
Tennamaram Estates Malaya x x United Plantations
Chemara Estates Malaya x x Guthries
Elmina Estates Malaya x Barlows
Colonial Office Singapore x x
High Commissioner's Office Kuala Lumpur x x
MAIN CLUSTER STAKEHOLDERS DURING COLONIAL TIMES
Research
Government Producers
116
Table 3. Main cluster players (rubber and palm oil) after WWII (1945-1970 ca.)
Source: Compilation of archival material (TNA, LMA, BC, UL) and secondary sources (Tate 1996; Martin 2003; White 2004)
FUNCTION INSTITUTIONS YEAR FOUNDED HEADQUARTER RUBBER PALM OIL ACTORS
RGA 1912 London x x after 1965 agency houses and large plantation
companies
RPC 1951 Kuala Lumpur x RGA; UPAM; MEOA; smallholders
MPOP 1952 Kuala Lumpur x Guthrie; H&C; Barlow; UP; Socfin
JSC 1952 London x MPOP members controlling bulking
facilities (Guthrie; H&C; UP; Socfin)
MPOC 1969 Kuala Lumpur x FELDA and MPOP
UPAM 1943 Kuala Lumpur x Foreign planters and smaller estates
MEOA N/A Kuala Lumpur x European and Asian estate owners
CREOA N/A Kuala Lumpur x Chinese rubber estate owners
OPGC 1968 Kuala Lumpur x Big estates; planters; FELDA
CDC 1948 London x British colonial government
FELDA 1956 Kuala Lumpur x x Malaysian Smallholders
Unilever 1929 Port Sunlight x
Ministry of Food London x British Government
Colonial Office &
Secretary of States for Colonies
London x x British Govenment
Commonwealth Relations
Office London x x British Government
Treasury London x British Government
High Commissioner Office Kuala Lumpur x x British Colonial Government
Malay(si)an Prime
Minister Office Kuala Lumpur x x Malay(si)an Government
Malaysian Ministry of
Natural Resources Kuala Lumpur x x Malay(si)an Government
Malaysian National Land
Committee Kuala Lumpur x x Malay(si)an Government
ISP 1919 Kuala Lumpur x x dissemination activities on behalf of
planters in Malaya
RRIM 1926 Kuala Lumpur x British colonial government; RGA
members and PAM Agricultural Department
of Malaya Serdang x x British colonial government
Gold Coast Agricultural
Department Accra x x British colonial government
Nigeria Agricultural
Department Ibadan x x British colonial government
WAIPOR 1938 Benin x British colonial government
INEAC Belgian Congo x Belgian colonial government
Chemara Estates Malaya x x Guthrie
Elmina Estates Malaya x Barlows
Tennamaram Estates Malaya x x United Plantations
Dusun Durian Estate Malaya x x H&C
OP Genetic consortium 1963-1973 Kuala Lumpur x Dunlop, Guthrie, H&C and Unilever
HCB Belgian Congo x Unilever
TPI 1955 London x x British Government
Royal Botanic Gardens London x x British Government
OPS N/A London x British Government
MARDI 1969 Kuala Lumpur x x Malaysian Ministry of Agriculture
Producers
Research Government
MAJOR CLUSTER STAKEHOLDERS AFTER WWII
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